Evening Briefing: Americas

US retail sales rose in August for a third month in a broad advance, adding to evidence that consumers are still spending for now even as tariffs boost the cost of some goods, sentiment remains subdued and the labor market shows signs of faltering.

The value of retail purchases, not adjusted for inflation, increased 0.6% after a similar gain in July, Commerce Department data showed Tuesday. That beat all estimates in a Bloomberg survey of economists. Excluding cars, sales climbed 0.7%. Nine out of 13 categories posted increases, led by online retailers, clothing stores and sporting goods, likely reflecting back-to-school shopping.

Though wage growth has cooled, many workers’ pay gains continue to outpace inflation. Other consumers, particularly the wealthy, are benefiting from a stock market rally.

Still, another economic report on Tuesday reinforced that manufacturing has largely struggled to gain its footing in recent months as uncertainty around President Donald Trump’s trade policy has dampened capital spending. US industrial production barely rose in August, reflecting a modest gain in manufacturing activity and a decline in utilities.—Jordan Parker Erb

What You Need to Know Today

Luigi Mangione’s first-degree murder charges were dismissed by a New York state judge, who ruled that prosecutors failed to show that he committed the crime as an act of terrorism. Judge Gregory Carro ruled Tuesday that prosecutors could pursue second-degree murder charges and several other counts against Mangione, who is accused of killing UnitedHealth executive Brian Thompson. While the decision means that he won’t face the prospect of life in prison without parole, Mangione still faces federal murder charges in a case in which prosecutors are seeking the death penalty.

Israel started its long-threatened push into the heart of Gaza City. The Israel Defense Forces said Tuesday its troops have begun an “expanded” ground operation in the de facto capital of the Palestinian territory after weeks of airstrikes and incursions into the outskirts of the city. "Gaza is burning," Defense Minister Israel Katz posted on X. The offensive came as a UN-commissioned inquiry on Tuesday concluded that Israel is responsible for committing genocide in Gaza.

US homebuilder sentiment remained at one of its lowest levels in years this month, underscoring the deep freeze in the housing market despite a recent drop in mortgage rates. An index of market conditions from the National Association of Home Builders and Wells Fargo was unchanged at 32 in September, similar to economists’ estimates and remaining stuck in the low-30s range it’s been lodged in since May. A value below 50 means more builders see conditions as poor than good.

Transportation

Tesla Doors Probed by US Regulator After Trapping Occupants

US auto safety regulators are probing whether Tesla door handles are defective, scrutinizing an approach the company has taken with millions of vehicles sold for more than a decade.

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Nestlé Chairman Paul Bulcke will step down early, the latest management upheaval after CEO Laurent Freixe was fired over a romantic relationship with a subordinate. Pablo Isla, who had been due to succeed Bulcke next year, will take over on Oct. 1, the Swiss foodmaker said in a statement Tuesday. Bulcke was under intense scrutiny over the upheaval and removal of Freixe, who he had described as a “perfect fit” to be CEO on his promotion last year.

Qube has started charging performance fees on investments made by some of its own employees in the firm’s hedge funds, aligning them with what clients pay. Investments by some staff have been switched to performance-fee paying investor share classes effective Aug. 1. The change means that those employees will be charged between 25% and 35% incentive fees depending on the funds in which their cash has been parked. The decision is said to affect personnel in Singapore and less than 5% of Qube’s employees worldwide.